Static General Awareness
RBI Current Reserve Ratios and Policy Rates
1. Bank Rate -7.75%
2. Repo Rate -6.75%
3. Reverse Repo Rate-5.75%
4. CRR- 4%
5. SLR-21.5%
6. MSF-7.75%
RBI
2) RBI AND ITS ROLES
RBI is the central Bank of India and controls the
entire the entire money issue, circulation and
control by its monetary policies and lending
policies. RBI is also known as the lender of last
resort.
Establishment: The reserve bank of India was
1) The Structure of Indian Banking
established on April 1, 1935 in accordance with the
The structure of the Indian banking system can be provisions of the Reserve Bank of India Act, 1934.
categorized in two ways.
The Central Office of the Reserve Bank of India was
The first divides the banks into three categories:
initially established in Calcutta but was
the Reserve Bank of India, commercial banks and
permanently moved to Mumbai in 1937. Though
cooperative banks. The second divides the banks
originally privately owned, since nationalization in
into two categories: scheduled banks and non1949, the Reserve Bank is fully owned by the
scheduled banks. In both of these systems of
Government of India.
categorization, the Reserve Bank of India, or RBI, is Main Functions
at the center of the banking structure. It holds the 1) Monetary Authority: Formulate, implements
reserve capital of all commercial and scheduled
and monitors the monetary policy.
banks in the country.
2) Regulator and supervisor of the financial
system: Prescribes broad parameters of banking
Scheduled Banks
operations within which the country‘s banking and
The eligibility criteria exist for scheduled banks:
financial system functions.
a) The first of which entails carrying on the
3) Manager of Foreign Exchange: Manages the
business of banking in India.
Foreign Exchange Management Act, 1999.
b) All scheduled banks must maintain a reserve
4) Issuer of Currency: Issues and exchanges or
capital of 5 lakhs rupees in the Reserve Bank of
destroys currency and coins not fit for circulations.
India.
5) Development role: Performs a wide range of
c) These are registered under the second schedule promotional functions to support national
of RBI Act, 1934.
objectives.
6) Bankers to the Government: performs merchant
banking function for the central and the state
governments; also acts as their banker.
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7) Bankers to banks: maintains banking accounts of Repo Rate
all scheduled banks.
Repo rate is the rate of interest which is levied on
Short-Term loans taken by commercial banks from
IMPORTANT POINTS ON RBI
RBI. Whenever the banks have any shortage of
1. RBI generally reviews the monetary policy every funds they can borrow it from RBI. A reduction in
three months on a quarterly basis
the repo rate will help banks to get money at a
2. The rate at which Reserve Bank of India lends
cheaper rate. When the repo rate increases,
short term money to the banks is called as repo
borrowing from RBI becomes more expensive.
rate
Reverse Repo Rate
3. The Reserve Bank of India was nationalized on
This is exact opposite of Repo rate. Reverse repo
1.1.1949
rate is the rate at which commercial banks
4. RBI functions are governed by RBI act 1934
CHARGE on their surplus funds with RBI. RBI uses
5. RBI is not expected to perform the function of
this tool when it feels there is too much money
accepting deposits from the general public
floating in the banking system. Banks are always
6. RBI has its headquarters at Mumbai
happy to keep money with RBI since their money is
7. Prime lending rate is not decided by RBI
in the safe hands with a good interest. An increase
8. Prime lending rate is decided by the individual
in Reverse repo rate can cause the banks to
banks
transfer more funds to RBI due to these attractive
9. RBI decides the following rates namely; Bank
interest rates.
rate, repo rate, reverse repo rate and cash reserve CRR Rate
ratio
Cash reserve Ratio (CRR) is the amount of cash
10. RBI was set up on the recommendations of
funds that the banks have to maintain with RBI. If
Hilton Young commission
RBI decides to increase the percent of this, the
11. The quantitative instruments of RBI are – bank available amount with the banks comes down. RBI
rate policy, cash reserve ratio and statutory
is using this method (increase of CRR rate), to
liquidity ratio
drain out the excessive money from the banks.
12. The objective of monetary policy of RBI is to
SLR Rate
control inflation; discourage hoarding of
SLR (Statutory Liquidity Ratio) is the amount a
commodities and encourage flow of credit into
commercial bank needs to maintain in the form of
neglected sector
cash, or gold or government approved securities
13. When RBI is lender of the last resort, it means (Bonds) before providing credit to its customers.
that RBI advances credit against eligible securities SLR is determined and maintained by the RBI in
14. Government of India decides the quantity of
order to control the expansion of bank credit. SLR
coins to be minted
is determined as the percentage of total demand
15. The method which is used currently in India to and time liabilities. Time Liabilities are the
issue currency note – minimum reserve system
liabilities a commercial bank is liable to pay to the
16. For issuing notes, RBI is required to hold the
customers after a specific time period. SLR is used
minimum reserves of Rs. 200 crore of which note
to control inflation and proper growth. Through
less than Rs. 115 crore is to be held in gold
SLR tuning, the money supply in the system can be
controlled efficiently.
INTEREST RATES DECIDED BY RBI
Bank Rate
INSPIRE 2
Bank rate is the rate of interest which is levied on
Long Term loans and Advances taken by
commercial banks from RBI. Changes in the bank
rate are often used by central banks to control the
money supply.
under which the bank accepts deposits from the
public and places the funds accepted in 100
percent risk free assets with maturity matching for
its liabilities. The bank takes no risk of lending at
all.
What is a small coin depot?
MSF Rate:Some bank branches are also authorised to
MSF (Marginal Standing Facility Rate) is the rate at establish Small Coin Depots to stock small coins.
which banks can borrow overnight from RBI. This
The Small Coin Depots also distribute small coins
was introduced in the monetary policy of RBI for
to other bank branches in their area of operation.
the year 2011-2012. Banks can borrow funds
What are soiled, mutilated and imperfect
through MSF when there is a considerable shortfall banknotes?
of liquidity. This measure has been introduced by
(i) "soiled note:" means a note which, has become
RBI to regulate short-term asset liability
dirty due to usage and also includes a two piece
mismatches more effectively.
note pasted together wherein both the pieces
presented belong to the same note, and form the
CURRENCY IN INDIA
entire note.
What do you know by currency chest?
(ii) Mutilated banknote is a banknote, of which a
Currency chests are operated by RBI so that they
portion is missing or which is composed of more
can provide good quality currency notes to the
than two pieces.
public. However, RBI has appointed commercial
(iii) Imperfect banknote means any banknote,
banks to open and monitor currency chests on
which is wholly or partially, obliterated, shrunk,
behalf of RBI. The cash kept in currency chests is
washed, altered or indecipherable but does not
considered to be kept in RBI. What do you mean
include a mutilated banknote.
by narrow banking? It is the system of banking
A Brief on FOREIGN EXCHANGE RESERVES
Components of forex Reserve
Total Reserves
Foreign Currency Assets
Gold
SDRs
Reserve Position in the IMF
As on july 24,2015 INR bn
US $ mn
22,551.80
353,648.1
20,995.30
329,245.4
1,216.10
19,074.3
257.1
4,024.2
83.3
1,304.3
imports, for intervention in the foreign currency
What actually is FOREX?
markets during periods of volatility, besides
Reserves are maintained by countries for meeting helping to boost the confidence of the market in
their international payment obligations — both
the ability of a country to meet its external
short and long terms, including sovereign and
commercial debts, financing of
INSPIRE 3
obligations and to absorb any unforseen external
shocks, contingencies or unexpected capital
movements.
India's foreign exchange reserves comprise foreign
currency assets, gold and special drawing rights
allocated to it by the International Monetary Fund
(IMF) in addition to the reserves it has parked with
the fund. Foreign exchange reserves are held and
managed by the RBI.
The Foreign currency assets are investment mainly
in instruments abroad which have the highest
credit rating and which do not pose any credit risk.
These include sovereign bonds, treasury bills and
short-term deposits in top-rated global banks
besides cash accounts.
Big businessmen, companies and institutions such
as schools, colleges, and hospitals have to make
payment through their bank accounts. Since there
are restrictions on number of withdrawals from
savings bank account, that type of account is not
suitable for them. They need to have an account
from which withdrawal can be made any number
of times. Banks open current account for them. On
this deposit bank does not pay any interest on the
balances. Rather the account holder pays certain
amount each year as operational charge. For the
convenience of the account holders banks also
allow withdrawal of amounts in excess of the
balance of deposit. This facility is known as
overdraft facility.
3) Types of Bank Accounts
A bank account can be a time deposit account or a
term deposit account or a no frill account ie BSBDA
.
TYPES OF BANK ACCOUNTS
a. Savings Bank Account
b. Current Deposit Account
c. Fixed Deposit Account
d. Recurring Deposit Account.
c. Fixed Deposit Account (also known as Term
Deposit Account)
Many a time people want to save money for long
period. If money is deposited in savings bank
account, banks allow a lower rate of interest.
Therefore, money is deposited in a fixed deposit
account to earn interest at a higher rate.
d. Recurring Deposit Account
This type of account is suitable for those who can
a. Savings Bank Account
save regularly and expect to earn a fair return on
This type of account can be opened with a
the deposits over a period of time. While opening
minimum initial deposit that varies from bank to
the account a person has to agree to deposit a
bank. Money can be deposited any time in this
fixed amount once in a month for a certain period.
account. Withdrawals can be made either by
The total deposit along with the interest therein is
signing a withdrawal form or by issuing a cheque
payable on maturity. However, the depositor can
or by using ATM card. Normally banks put some
also be allowed to close the account before its
restriction on the number of withdrawal from this maturity and get back the money along with the
account. Interest is allowed on the balance of
interest till that period. The rate of interest
deposit in the account. The rate of interest on
allowed on the deposits is higher than that on a
savings bank account varies from bank to bank and savings bank deposit but lower than the rate
also changes from time to time. Interest rate is
allowed on a fixed deposit for the same period.
paid to the account holders on daily balance basis. Notes: a) Minimum age to open a bank account is
now 10 years. b) Maximum Interest rate is given
b. Current Deposit Account
on FD A/c. c) The maximum period of an FD is 10
years & for RD is 10 years.
INSPIRE 4
INTEREST RATE ON BANK ACOUNTS
A) Some points related to Interest Rates on Bank
Accounts
1) Interest on Savings A/c is calculated on daily
balance basis.
2) Now, All Scheduled Commercial Banks
(Excluding RRBs) have the discretion to offer
differential interest rates based on whether the
term deposits are with or without-prematurewithdrawal-facility, subject to the following
guidelines:
i. All term deposits of individuals (held singly or
jointly) of ₹ 15 lakh and below should, necessarily,
have premature withdrawal facility.
ii. For all term deposits other than (i) above, banks
can offer deposits without the option of
premature withdrawal as well.
iii. Banks should disclose in advance the schedule
of interest rates payable on deposits i.e. all
deposits mobilized by banks should be strictly in
conformity with the published schedule.
B) Taxation of Savings Bank Interest rates:
Unlike interest on fixed deposits, interest earned
on savings bank accounts is not subject to Tax
Deduction at Source. However, this does not mean
the interest earned on Savings accounts is
completely tax free. It is exempt upto Rs. 10,000 in
a year, and if the interest you earn from Savings
accounts crosses this threshold, it becomes subject
to tax.
Rate of interest - 9.3 per cent per annum
Investment to be in - multiples of Rs. 1000/Maximum investment - limit Rs. 15 lakh
Minimum eligible age for investment - 60 years
(55 years for those who have retired on
superannuation or under a voluntary or special
voluntary scheme).
Premature closure/withdrawal facility Permitted
after one year of opening the account but with
penalty.
Modes of holding
Accounts can be held both in single and joint
holding modes. Joint holding is allowed only with
spouse.
Applicability to NRI, PIO and HUFs
Non Resident Indians (NRIs), Persons of Indian
Origin (PIO) and Hindu Undivided Family (HUF) are
not eligible to open an account under the Scheme.
4) NBFC:
A Non-Banking Financial Company (NBFC) is a
company registered under the Companies Act,
1956 engaged in the business of loans and
advances, acquisition of
shares/stocks/bonds/debentures/securities issued
by Government or local authority or other
marketable securities of a like nature, leasing, hirepurchase, insurance business, chit fund business.
Difference between BANK & NBFC:
NBFCs lend and make investments and hence their
activities are akin to that of banks; however there
C) Senior Citizens Savings Scheme, 2004:
are a few differences as given below:
A Scheme which is giving a higher interest rate to
i. NBFC cannot accept demand deposits;
the senior citizens, if they make deposits in the
ii. NBFCs do not form part of the payment and
banks.
settlement system and cannot issue cheques
The salient features of the Senior Citizens Savings drawn on itself;
Scheme, 2004 are given below:
iii. deposit insurance facility of Deposit Insurance
Tenure of the deposit account - 5 years, which can and Credit Guarantee Corporation is not available
be extended by 3 years.
to depositors of NBFCs, unlike in case of banks.
Different types/categories of NBFCs registered
with RBI:
INSPIRE 5
NBFCs are categorized
a) In terms of the type of liabilities into Deposit
and Non-Deposit accepting NBFCs,
b) Non deposit taking NBFCs by their size into
systemically important and other non-deposit
holding companies (NBFC-NDSI and NBFC-ND) and
c) By the kind of activity they conduct.
Within this broad categorization the different
types of NBFCs are as follows:
i. Asset Finance Company(AFC) : An AFC is a
company which is a financial institution carrying on
as its principal business the financing of physical
assets supporting productive/economic activity,
such as automobiles, tractors, lathe machines,
generator sets, earth moving and material
handling equipments, moving on own power and
general purpose industrial machines.
ii. Investment Company (IC) : IC means any
company which is a financial institution carrying on
as its principal business the acquisition of
securities.
iii. Loan Company (LC): LC means any company
which is a financial institution carrying on as its
principal business the providing of finance whether
by making loans or advances or otherwise for any
activity other than its own but does not include an
Asset Finance Company.
iv. Infrastructure Finance Company (IFC): IFC is a
non-banking finance company
a) which deploys at least 75 per cent of its total
assets in infrastructure loans,
b) has a minimum Net Owned Funds of Rs. 300
crore,
c) has a minimum credit rating of A or equivalent
d) and a CRAR of 15%.
v. Infrastructure Debt Fund: Non- Banking
Financial Company (IDF-NBFC) : IDF-NBFC is a
company registered as NBFC to facilitate the flow
of long term debt into infrastructure projects. IDFNBFC raise resources through issue of Rupee or
Dollar denominated bonds of minimum 5 year
maturity. Only Infrastructure Finance Companies
(IFC) can sponsor IDF-NBFCs.
vi. Non-Banking Financial Company - Micro
Finance Institution (NBFC-MFI): NBFC-MFI is a
non-deposit taking NBFC having not less than
85%of its assets in the nature of qualifying assets
which satisfy the following criteria:
a. loan disbursed by an NBFC-MFI to a borrower
with a rural household annual income not
exceeding Rs. 60,000 or urban and semi-urban
household income not exceeding Rs. 1,20,000.
b. tenure of the loan not to be less than 24 months
for loan amount in excess of Rs. 15,000 with
prepayment without penalty;
vii. Non-Banking Financial Company – Factors
(NBFC-Factors): NBFC-Factor is a non-deposit
taking NBFC engaged in the principal business of
factoring. The financial assets in the factoring
business should constitute at least 75 percent of
its total assets and its income derived from
factoring business should not be less than 75
percent of its gross income.
Register with RBI:
A company incorporated under the Companies
Act, 1956 and desirous of commencing business of
non-banking financial institution as defined under
Section 45 I(a) of the RBI Act, 1934 should comply
with the following:
i. it should be a company registered under Section
3 of the companies Act, 1954
ii. It should have a minimum net owned fund of Rs
200 lakh.
Deposits in NBFC: a) Presently, the maximum rate
of interest an NBFC can offer is 12.5%. The interest
may be paid or compounded at rests not shorter
than monthly rests. b) The NBFCs are allowed to
accept/renew public deposits for a minimum
period of 12 months and maximum period of 60
months. They cannot accept deposits repayable on
demand.
c) The deposits with NBFCs are not insured.
INSPIRE 6
d) The repayment of deposits by NBFCs is not
guaranteed by RBI.
Settlement Systems Act, 2007 by the Reserve Bank
of India.
Q.3. What has been the rationale of allowing nonBrief about RNBC
bank entities for setting up of WLAs?
a) Residuary Non-Banking Company is a class of
Ans. The rationale of allowing non-bank entity to
NBFC which is a company and has as its principal
set up White Label ATMs has been to increase the
business the receiving of deposits, under any
geographical spread of ATM for increased /
scheme or arrangement or in any other manner
enhanced customer service.
and not being Investment, Asset Financing, Loan
Q.4. What type of cards can be used at an
Company.
ATM/WLA?
b) These companies are required to maintain
Ans . The ATM/ATM cum debit cards, credit cards
investments as per directions of RBI, in addition to and open prepaid cards (that permit cash
liquid assets.
withdrawal) issued by banks can be used at
c) The amount payable by way of interest,
ATMs/WLAs for various transactions.
premium, bonus or other advantage, by whatever Q.5. What is Personal Identification Number
name called by a RNBC in respect of deposits
(PIN)?
received shall not be less than the amount
Ans . PIN is the numeric password which is
calculated at the rate of 5% (to be compounded
separately mailed / handed over to the customer
annually) on the amount deposited in lump sum or by the bank while issuing the card. Most banks
at monthly or longer intervals; and at the rate of
require the customers to change the PIN on the
3.5% (to be compounded annually) on the amount first use. Customer should not disclose PIN to
deposited under daily deposit scheme.
anybody, including to bank officials. Customers
d) Further, a RNBC can accept deposits for a
should change the PIN at regular intervals.
minimum period of 12 months and maximum
Q.6. Can these cards be used at any bank/nonperiod of 84 months from the date of receipt of
bank ATM (WLA) in the country?
such deposit. They cannot accept deposits
Ans Yes. The cards issued by banks in India may be
repayable on demand.
used at any bank / white label ATM in the country.
Q.7. Is the customer charged for ATM
5) ATM
transactions?
Q.1. what is an Automated Teller Machine
Ans. With effect from November 01, 2014, Savings
(ATM)?
bank account holders can do a minimum of three
Ans. Automated Teller Machine is a computerized transactions (including both financial and nonmachine that provides the customers of banks the financial transactions) free of charge in a month at
facility of accessing their account for dispensing
other bank ATMs in case of ATMs located in six
cash and to carry out other financial & nonmetro locations, viz. Mumbai, New Delhi, Chennai,
financial transactions without the need to actually Kolkata, Bengaluru and Hyderabad. At other
visit their bank branch.
locations, the savings bank account holders can
Q.2. What are White Label ATMs (WLAs)?
transact a minimum of five transactions (including
Ans ATMs set up, owned and operated by nonboth financial and non-financial transactions) free
banks are called White Label ATMs. Non-bank ATM of charge in a month at other bank ATMs.
operators are authorized under Payment &
Similarly, Basic Savings Bank Deposit Account
holders will continue to get five free transactions.
INSPIRE 7
Banks on their own can decide to offer more
number of transactions free of cost to their
customers. In case of charges to be levied on
customers, the customer can be charged a
maximum of Rs. 20/- per transaction (plus service
tax, if any) by his/her bank.
Q.8. What steps should a customer take in case of
failed ATM transaction at other bank/white label
ATMs, when his / her account is debited?
Ans . The customer should lodge a complaint with
the card issuing bank at the earliest. This process is
applicable even if the transaction was carried out
at another bank‘s/non-bank‘s ATM. In case of
WLAs, the contact number/toll free numbers are
also available for lodging complaints regarding
failed transactions at their ATMs.
Q.9. Is there any time limit for the card issuing
banks for recrediting the customers account for a
failed ATM/WLA transaction indicated under Q.
No. 9?
Ans . As per the RBI instructions, banks have been
mandated to resolve customer complaints by recrediting the customer‘s account within 7 working
days from the date of complaint.
Q.10. Are the customers eligible for
compensation for delays beyond 7 working days?
Ans . Yes. Effective from July 1, 2011, banks have
to pay compensation of Rs. 100/- per day for
delays in re-crediting the amount beyond 7
working days from the date of receipt of complaint
for failed ATM transactions. The compensation has
to be credited to the account of the customer
without any claim being made by the customer. If
the complaint is not lodged within 30 days of
transaction, the customer is not entitled for any
compensation for delay in resolving his / her
complaint.
Q.11. What is the course of action for the
customer if the complaint is not addressed by
his/her bank within the stipulated time / not
addressed to his satisfaction?
Ans . The customer can take recourse to the
Banking Ombudsman, if the grievance is not
redressed by the his/her card issuing bank.
6) NPA-Non-Performing Asset& SARFAESI
It means once the borrower has failed to make
interest or principal payments for 90 days, the loan
is considered to be a non-performing asset.
SARFAESI Act and Rules
SARFAESI Act (The Securitization and
Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002) was
enacted to regulate securitization and
reconstruction of financial assets and enforcement
of security interest created in respect of Financial
Assets to enable realization of such assets.
The SARFAESI Act provides for the manner for
enforcement of security interests by a secured
creditor without the intervention of a court or
tribunal. If any borrower fails to discharge his
liability in repayment of any secured debt within
60 days of notice from the date of notice by the
secured creditor, the secured creditor is conferred
with powers under the SARFAESI Act to
a) take possession of the secured assets of the
borrower, including transfer by way of lease,
assignment or sale, for realizing the secured assets
b) takeover of the management of the business of
the borrower including the right to transfer by way
of lease, assignment or sale for realizing the
secured assets,
c) appoint any person to manage the secured
assets possession of which is taken by the secured
creditor, and
d) require any person, who has acquired any of the
secured assets from the borrower and from whom
money is due to the borrower, to pay the secured
creditor so much of the money as if sufficient to
pay the secured debt.
The assets portfolio of the banks is required to be
classified as
INSPIRE 8
(1) standard assets
(2) sub-standard assets
(3) doubtful assets and
(4) loss assets.
Standard asset is one that does not disclose any
problems and which does not carry more than
normal risk attached to the business . An asset
which has been classified as NPA for a period not
exceeding 12 months is considered as substandard asset. Doubtful asset is one which has
remained NPA for a period exceeding 12 months.
An asset which is considered uncollectible and loss
has been identified by the bank or internal or
external auditors or the RBI inspection and the loss
has not been written off is regarded as loss asset.
Each depositor in a bank is insured upto a
maximum of Rs.1,00,000 (Rupees One Lakh) for
both principal and interest amount held by him in
the same capacity.
Does the DICGC insure just the principal on an
account or both principal and accrued interest?
The DICGC insures principal and interest upto a
maximum amount of Rs. One lakh.
Can any insured bank withdraw from the DICGC
coverage?
No. The deposit insurance scheme is compulsory
and no bank can withdraw from it.
8) NEFT AND RTGS
National Electronic Funds Transfer System (NEFT):
RBI introduced an electronic funds transfer system
to facilitate an efficient, secure, economical,
7) DICGC(Deposit Insurance and Credit Guarantee reliable and expeditious system of funds transfer
Corporation of India)
and clearing in the banking sector throughout
Which banks are insured by the DICGC?
India, and to relieve the stress on the existing
Commercial Banks: All commercial banks including paper-based funds transfer and clearing system
branches of foreign banks functioning in India,
called National Electronic Funds Transfer System
local area banks and regional rural banks are
(NEFT System).
insured by the DICGC.
There is no minimum & maximum limit for NEFT.
What does the DICGC insure?
RTGS: RTGS is an acronym that stands for Real
In the event of a bank failure, DICGC protects bank Time Gross Settlement. RTGS is a funds transfer
deposits that are payable in India. The DICGC
system where money is moved from one bank to
insures all deposits such as savings, fixed, current, another in real-time‘, and on gross basis. When
recurring, etc. except the following types of
using the banking method, RTGS is the fastest
deposits.
possible way to transfer money. Minimum Amount
(i) Deposits of foreign Governments;
needed for RTGS is 2 Lakhs and there is no
(ii) Deposits of Central/State Governments;
maximum limit for RTGS.
(iii)Inter-bank deposits;
(iv) Deposits of the State Land Development Banks 9) Foreign Accounts in India
with the State co-operative bank;
a) NRO A/c (Foreign Tourist)
(v) Any amount due on account of any deposit
Can foreign tourists open a bank account in India
received outside India
during their short visit?
(vi) Any amount, which has been specifically
Yes. Foreign tourists during their short visit to India
exempted by the corporation with the previous
can open a Non-Resident (Ordinary) Rupee (NRO)
approval of Reserve Bank of India.
account (Current / Savings) with any Authorised
What is the maximum deposit amount insured by Dealer bank dealing in foreign exchange. Such
the DICGC?
account can be opened up to a maximum period of
6 months.
INSPIRE 9
What credits can be made to such accounts?
Funds remitted from outside India through
banking channel or those obtained by sale of
foreign exchange brought by the tourists to India
can be credited to the NRO account.
Can the NRO account be used for making local
payments?
Yes. Tourists can freely make local payments
through the NRO account. All payments to
residents exceeding INR 50,000 can be made only
by means of cheques / pay orders / demand drafts.
b) EEFC A/c
What is an EEFC Account and what are its
benefits?
Ans. Exchange Earners' Foreign Currency Account
(EEFC) is an account maintained in foreign
currency with an Authorised Dealer i.e. a bank
dealing in foreign exchange. It is a facility provided
to the foreign exchange earners, including
exporters, to credit 100 per cent of their foreign
exchange earnings to the account, so that the
account holders do not have to convert foreign
exchange into Rupees and vice versa, thereby
minimizing the transaction costs.
Who can open an EEFC account?
Ans. All categories of foreign exchange earners,
such as individuals, companies, etc. who are
resident in India, may open EEFC accounts.
What are the different types of EEFC accounts?
Can interest be paid on these accounts?
Ans. An EEFC account can be held only in the form
of a current account. No interest is payable on
EEFC accounts.
Accounts for NRI/PIO
What are the different types of accounts which
can be maintained by an NRI/PIO in India?
Types of accounts which can be maintained by an
NRI / PIO in India:
A. Non-Resident Ordinary Rupee Account (NRO
Account)
NRO accounts may be opened / maintained in the
form of current, savings, recurring or fixed deposit
accounts. Interest rates offered by banks on NRO
deposits cannot be higher than those offered by
them on comparable domestic rupee deposits.
● Account should be denominated in Indian
Rupees.
● Permissible credits to NRO account are transfers
from rupee accounts of non-resident banks,
remittances received in permitted currency from
outside India through normal banking channels,
permitted currency tendered by account holder
during his temporary visit to India, legitimate dues
in India of the account holder like current income
like rent, dividend, pension, interest, etc., sale
proceeds of assets including immovable property
acquired out of rupee/foreign currency funds or by
way of legacy/ inheritance.
● NRI/PIO may remit from the balances held in
NRO account an amount not exceeding USD one
million per financial year, subject to payment of
applicable taxes.
● The limit of USD 1 million per financial year
includes sale proceeds of immovable properties
held by NRIs/PIOs.
B. Non-Resident (External) Rupee Account (NRE
Account)
1) NRE account may be in the form of savings,
current, recurring or fixed deposit accounts.
2) Such accounts can be opened only by the nonresident himself and not through the holder of the
power of attorney.
3) Account will be maintained in Indian Rupees.
4) Accrued interest income and balances held in
NRE accounts are exempt from Income tax.
5) Authorised dealers/authorised banks may at
their discretion allow for a period of not more than
two weeks,
overdrawings in NRE savings bank accounts, up to
a limit of Rs.50,000.
6) Loans up to Rs.100 lakh can be extended against
security of funds held in NRE Account either to the
depositors or third parties.
INSPIRE 10
C. Foreign Currency Non Resident (Bank) Account –
FCNR (B) Account
● FCNR (B) accounts are only in the form of term
deposits of 1 to 5 years
● Account can be in any freely convertible
currency.
● Loans up to Rs.100 lakh can be extended against
security of funds held in FCNR (B) deposit either to
the depositors or third parties.
● The interest rates are stipulated by the
Department of Banking Operations and
Development, Reserve Bank of India.
therein as the payee, or to any one else to whom it
is endorsed (transferred).
3. Crossed Cheque
Crossing of cheque means drawing two parallel
lines on the face of the cheque with or without
additional words like "& CO." or "Account Payee"
or "Not Negotiable". A crossed cheque cannot be
encashed at the cash counter of a bank but it can
only be credited to the payee's account.
4. Ante-Dated Cheque
If a cheque bears a date earlier than the date on
which it is presented to the bank, it is called as
10) NEGOTIABLE INSTRUMENTS
"ante-dated cheque". Such a cheque is valid upto 3
DEFINITION OF NEGOTIABLE INSTRUMENT
months from the date of the cheque.
According to section 13 of the Negotiable
5. Post-Dated Cheque
Instruments Act, 1881, a negotiable instrument
If a cheque bears a date which is yet to come
means ―promissory note, bill of exchange, or
(future date) then it is known as post-dated
cheque, payable either to order or to bearer.
cheque. A post dated cheque cannot be honoured
earlier than the date on the cheque.
11) Cheque
6. Stale Cheque
It is an instrument in writing containing an
If a cheque is presented for payment after 3
unconditional order, addressed to a banker, sign
months from the date of the cheque it is called
by the person who has deposited money with the stale cheque. A stale cheque is not honoured by
banker, requiring him to pay on demand a certain the bank.
sum of money only to or to the order of certain
7. A self cheque
person or to the bearer of instrument."
A self cheque is written by the account holder as
pay self to receive the money in the physical form
Types of Cheque
from the branch where he holds his account.
1. Bearer Cheque or open Cheque
8. A truncated cheque
When the words "or bearer" appearing on the face means a cheque which is truncated during the
of the cheque are not cancelled, the cheque is
course of a clearing cycle, either by the clearing
called a bearer cheque. The bearer cheque is
house or by the bank whether paying or receiving
payable to the person specified therein or to any
payment, immediately on generation of an
other else who presents it to the bank for
electronic image for transmission, substituting the
payment.
further physical movement of the cheque in
2. Order Cheque
writing. The expression ―clearing house means
When the word "bearer" appearing on the face of the clearing house managed by the Reserve Bank
a cheque is cancelled and when in its place the
of India or a clearing house recognised as such by
word "or order" is written on the face of the
the Reserve Bank of India.‘
cheque, the cheque is called an order cheque.
Parties of a Cheque:
Such a cheque is payable to the person specified
There are three parties to the cheque
INSPIRE 11
1-Drawer or Maker
2-The bank - on whom the cheque is drawn (i.e.
the bank with whom the account is maintained by
the drawer)
3- Payee – Payee is the person whose name is
mentioned on the cheque to whom or to whose
order the money is directed to be paid.
12) BANKING OMBUDSMAN SCHEME 2006
i. The Banking Ombudsman Scheme enables a
bank customer for filing of complaints relating to
certain services rendered by banks.
ii. The Banking Ombudsman is a senior official
appointed by the Reserve Bank of India to redress
customer complaints against deficiency in certain
banking services.
iii. All Scheduled Commercial Banks, Regional Rural
Banks and Scheduled Primary Co-operative Banks
are covered under the Scheme.
Other Important Points:
4) The Banking Ombudsman does not charge any
fee for filing and resolving customers‘ complaints.
5) The maximum compensation which a BO can
help a complainant to get is Rs. 10 lakhs.
6) If a complaint is not settled by an agreement
within a period of one month, the Banking
Ombudsman proceeds further to pass an award.
Before passing an award, the Banking Ombudsman
provides reasonable opportunity to the
complainant and the bank, to present their case.
7) If one is not satisfied with the decision passed
by the Banking Ombudsman, one can approach the
appellate authority who is the Deputy Governor of
the RBI.
13) FINANCIAL INCLUSION
Financial inclusion involves
1) Give formal banking services to poor people in
urban & rural areas.
2) Promote habit of money-savings, insurance,
pension-investment among poor-people.
3) Help them get loans at reasonable rates from
normal banks. So they don‘t become victims in the
hands of local moneylender.
Some Important initiatives for financial inclusion:
1) Lead banking scheme (LBS).
2) No frills account.
3) BSBDA
4) Business Correspondents (BC) system.
5) Swabhiman Campaign
6) PMJDY
Lead Bank Scheme
The Lead Bank Scheme, introduced towards the
end of 1969, envisages assignment of lead roles to
individual banks (both in public sector and private
sector) for the districts allotted to them. A bank
having a relatively large network of branches in the
rural areas of a given district and endowed with
adequate financial and manpower resources has
generally been entrusted with the lead
responsibility for that district. Accordingly, all the
districts in the country have been allotted to
various banks. The lead bank acts as a leader for
coordinating the efforts of all credit institutions in
the allotted districts
No Frill Account
'No Frills 'account is a basic banking account. Such
account requires either nil minimum balance or
very low minimum balance. Charges applicable to
such accounts are low. Services available to such
account is limited. In what can be described as a
watershed Annual Policy Statement, the RBI in
2005-06 called upon Indian banks to design a no
frills account‘ – a no precondition, low minimum
balance maintenance‘ account with simplified KYC
(Know Your Customer) norms. But All the existing
No-frills‘ accounts opened were converted into
BSBDA in compliance with the guidelines issued by
RBI in 2012 .
BSBDA
RBI in 2012 came out with fresh guidelines and
asked banks to offer a Basic Savings Bank Deposit
INSPIRE 12
Account‘ which will offer following minimum
common facilities to all their customers.
These guidelines includes:(a) This account shall not have the requirement of
any minimum balance.
(b) The services available in the account will
include deposit and withdrawal of cash at bank
branch as well as ATMs; receipt/credit of money
through electronic payment channels or by means
of deposit/collection of cheques drawn by
Central/State Government agencies and
departments;
(c ) While there will be no limit on the number of
deposits that can be made in a month, account
holders will be allowed a maximum of four
withdrawals in a month, including ATM
withdrawals; and
(d) Facility of ATM card or ATM-cum-Debit Card.
Business Correspondent
Business correspondents are bank representatives.
They personally goes to the area allotted to them
and carry out banking.
 They help villagers to open bank accounts.
 They help villagers in banking transactions.
(deposit money, take money out of savings
account, loans etc.)
 The Business Correspondent carries a
mobile device.
 The villager gives his thumb impression or
electronic signature, and get the money.
 Business Correspondents get commission
from bank for every new account opened,
every transaction made via them, every
loan-application processed etc.
Recently on Financial Inclusion
The Reserve Bank of India (RBI) has constituted a
committee with the objective of working out a
medium-term (five-year) measurable action plan
for financial inclusion. The terms of reference will
include reviewing the existing policy of financial
inclusion, including supportive payment system
and customer protection framework, taking into
account the recommendations made by various
committees set up earlier.
It will also study the cross-country experience in
financial inclusion to identify key learnings,
particularly in the area of technology-based
delivery models,that could inform policies and
practices. Deepak Mohanty, RBI executive director,
will chair the committee.
14) TYPES OF MONEY
Commodity Money - Commodity money value is
derived from the commodity out of which it is
made. The commodity itself represents money,
and the money is the commodity.
Representative Money - is money that includes
token coins, or any other physical tokens like
certificates, that can be reliably exchanged for a
fixed amount/quantity of a commodity like gold or
silver.
Fiat Money - Fiat money, also known as fiat
currency is the money whose value is not derived
from any intrinsic value or any guarantee that it
can be converted into valuable commodity (like
gold). Instead, it derives value only based On
government order (fiat)
Commercial Bank Money - Commercial bank
money or the demand deposits are claims against
financial institutions which can be used for
purchasing goods and services.
Reserve Money (M 0)
Currency in circulation + Bankers deposits with the
RBI + Other‘ deposits with the RBI = Net RBI credit
to the Government + RBI credit to the commercial
sector + RBI's claims on banks + RBI's net is foreign
assets + Govemment‘s currency liabilities to the
public - RBI's net non-monetary liabilities.
M1
Currency with the public + Demand deposits with
the banking system + 'Other' deposits with the RBI
M2
M1 + Savings deposits of office savings banks.
INSPIRE 13
M3
M1+ Time deposits with the banking system
= Net bank credit to the Government + Bank credit
to the Commercial sector + Net foreign assets of
the banking sector + Goveinment‘s currency
liabilities to the public - Net non-monetary
liabilities of the banking sector.
M4
M3 +All deposits with post office savings banks
(excluding National Savings Certificates)
Bhartiya Reserve Bank Note Mudran Private
Limited (BRBNMPL)
The Reserve Bank established BRBNMPL in
February 1995 as a wholly-owned subsidiary to
augment the production of bank notes in India and
to enable bridging of the gap between supply and
demand for bank notes in the country.
15) FINANCIAL MARKET
Any marketplace where buyers and sellers
participate in the trade of assets such as equities,
bonds, currencies and derivatives. Financial
markets are typically defined by having
transparent pricing, basic regulations on trading,
costs and fees and market forces determining the
prices of securities that trade.
MONEY MARKET
"Money Market" refers to the market for shortterm requirement and deployment of funds.
Money market instruments are those instruments,
which have a maturity period of less than one
year.
The most active part of the money market is the
market for overnight call and term money
between banks and institutions and repo
transactions. Money Market is regulated by RBI.
Money Market can be further divided into 3 parts.
These are:
a) Call Money Market
b) Term Money Market
c) Notice Money Market
The market to get funds for 1 day only is called as
Call Money Market.
The market to get funds for 2 days to 14 days is
called as Notice Money Market.
The market to get funds for 15 days to 1 year is
called as Term Money Market.
Some of the Money Market instruments are:
1) Commercial Paper
2) Certificate of Deposit
3) T-bills
4) Cash Management Bills
Commercial Papersa) A CP is a short term security (7 days to 365 days)
issued by a corporate entity (other than a bank), at
a discount to the face value.
b) Commercial Paper (CP) is an unsecured money
market instrument issued in the form of a
promissory note.
c) CPs normally give a higher return than fixed
deposits & CDs.
d) CP can be issued in denominations of Rs. 5 lakh
or multiples thereof. Amount invested by a single
investor should not be less than Rs. 5 lakh (face
value).
e) Only corporates who get an investment grade
rating can issue CPs, as per RBI rules. It is issued at
a discount to face value.
f) Bank and FI‘s are prohibited from issuance and
underwriting of CP‘s.
Certificates of Deposit
a) CDs are negotiable money market instrument
issued in demat form or as a Usance Promissory
Notes.
b) CDs issued by banks should not have the
maturity less than seven days and not more than
one year.
c) Financial Institutions are allowed to issue CDs
for a period between 1 year and up to 3 years.
INSPIRE 14
d) CDs are like bank term deposits but unlike
traditional time deposits these are freely
negotiable and are often referred to as Negotiable
Certificates of Deposit.
e) CDs normally give a higher return than Bank
term deposit.
f) All scheduled banks (except RRBs and Cooperative banks) are eligible to issue CDs.
g) CDs are issued in denominations of Rs. 1 Lac and
in the multiples of Rs. 1 Lac thereafter.
h) Discount/Coupon rate of CD is determined by
the issuing bank/FI.
i) Loans cannot be granted against CDs and
Banks/FIs cannot buy back their own CDs before
maturity
b) The CMBs have the generic character of T-bills
but are issued for maturities less than 91 days.
c) Like T-bills, they are also issued at a discount
and redeemed at face value at maturity.
d) The tenure, notified amount and date of issue of
the CMBs depends upon the temporary cash
requirement of the Government.
Capital Market- These are the financial market for
buying and selling of funds for long terms, these
consists of Shares, Debentures, equities etc.
Capital market is regulated by- SEBI (Securities and
Exchange Board of India) Capital Market consists
of two main blocks, they arePrimary Market
Secondary Market
Treasury bills
a) Treasury Bills are short term (up to one year)
borrowing instruments of the Government of India
which enable investors to park their short term
surplus funds while reducing their market risk.
b) They are auctioned by Reserve Bank of India at
regular intervals and issued at a discount to face
value.
c) Any person in India including Individuals, Firms,
Companies, Corporate bodies, Trusts and
Institutions can purchase Treasury Bills.
d) Treasury Bills are eligible securities for SLR
purposes.
e) Treasury Bills are available for a minimum
amount of Rs. 25,000 and in multiples of Rs.
25,000 thereafter.
f) At present, RBI issues T-Bills for three different
maturities: 91 days, 182 days and 364 days.
Primary Market (New Issue Market)- A market
that issues new securities on an exchange.
Companies, governments and other groups obtain
financing through debt or equity based securities.
Cash Management Bills (CMBs)
a) Government of India, in consultation with the
Reserve Bank of India, has decided to issue a new
short-term instrument, known as Cash
Management Bills (CMBs), to meet the temporary
mismatches in the cash flow of the Government.
Secondary Market- Secondary market is basically a
reselling market , Here the stocks that are already
sold in the primary market are resold mostly by
the stockholders or companies to gain more
returns.
Shares/EquitiesCompanies usually divide their capital into small
parts of equal value. This smallest part is known as
a share. Companies usually issue shares in the
public to raise capital. People who buy or are
allotted shares are called shareholders.
ACRONYMS CORNERSEBI- Securities and Exchange Board of India
IPO- Initial Public Offerings
16) PRIORITY SECTOR LENDING Highlights of PSL
It means provide credit to the needy sectors of the
society. The sectors are:
• Agriculture
INSPIRE 15
• Micro and Small Enterprises
• Education
• Housing
• Export
• Weaker Sections
• Social Infrastructure
• Renewable Energy
Targets under PSL
• Agriculture: 18 percent of ANBC. Out of this 18
percent, a target of 8 percent of ANBC is for Small
and Marginal Farmers, to be achieved in a phased
manner i.e., 7 per cent by March 2016 and 8 per
cent by March 2017.
• Weaker Sections: 10 percent of ANBC.
• Micro Enterprises: 7.5 percent of ANBC has been
prescribed for Micro Enterprises, to be achieved in
a phased manner i.e. 7 percent by March 2016 and
7.5 percent by March 2017.
• Overall PSL Target for Domestic Bank/Foreign
Bank with more than 20 Branches: 40 percent of
Adjusted Net Bank Credit.
• Overall PSL Target for Foreign Bank with less
than 20 Branches: 40 percent of Adjusted Net Bank
Credit to be achieved in a phased manner2015-16
32
2016-17
34
2017-18
36
2018-19
38
2019-20
40
Categorization of MSME according to MSME ACT
2006
Manufacturing Sector (Goods)
Enterprise
s
Investment in plant and
machinery
Micro
Enterprise
s
Does not exceed twenty five
lakh rupees
Small
Enterprise
s
More than twenty five lakh
rupees but does not exceed five
crore rupees
Medium
Enterprise
s
More than five crore rupees but
does not exceed ten crore
rupees
Service Sector
Enterprise
s
Investment in plant and
machinery
Micro
Enterprise
s
Does not exceed lakh rupees
Small
Enterprise
s
More than lakh rupees but does
not exceed two crore rupees
Medium
Enterprise
s
More than two crore rupees
but does not exceed 5 crore
rupees
Other Facts:
• Farmers with landholding of up to 1 hectare are
considered as Marginal Farmers. Farmers with a
landholding of more than 1 hectare and upto 2
hectares are considered as Small Farmers.
• Scheduled Commercial Banks having any
shortfall in lending to priority sector shall be
allocated amounts for contribution to the Rural
Infrastructure Development Fund (RIDF)
established with NABARD.
• For Renewable Energy, bank loans up to a limit
of Rs.15 crore to borrowers for purposes like solar
based power generators, etc. For individual
households, the loan limit will be Rs.10 lakh per
borrower.
• For Housing, banks can provide loans to
individuals up to Rs. 28 lakh in metropolitan
centres (with population of ten lakh and above)
and loans up to Rs. 20 lakh in other centres for
purchase/construction of a dwelling unit per
family.
INSPIRE 16
• Export credit will be allowed up to 32 percent of
ANBC for Foreign banks with less than 20 branches
in India.
• For Education, banks can provide loans to
individuals for educational purposes including
vocational courses upto Rs. 10 lakh for studies in
India and Rs. 20 lakh for studies abroad.
3. What are the Targets and Sub-targets for banks
under priority sector?
Categories Domestic scheduled commercial banks
and Foreign banks with 20 branches and above
Foreign banks with less than 20 branches
Total Priority Sector 40 percent of Adjusted Net
Bank Credit or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher. 40
percent of Adjusted Net Bank Credit or Credit
Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher; to be achieved in a phased
manner by 2020
The Total Priority Sector target of 40 percent for
foreign banks with less than 20 branches has to be
achieved in a phased manner as under:- Financial
Year The Total Priority Sector as percentage of
ANBC or Credit Equivalent Amount of OffBalance
Sheet Exposure, whichever is higher 2015-16 32
2016-17 34 2017-18 36 2018-19 38 2019-20 40
4. What constitutes Micro and Small Enterprises
under priority sector?
Bank loans to Micro and Small Manufacturing and
Service Enterprises, provided these units satisfy
the criteria for investment in plant
machinery/equipment as per MSMED Act 2006.
5. What is the loan limit for education under
priority sector?
Loans to individuals for educational purposes
including vocational courses upto `10 lakh for
studies in India and `20 lakh for studies abroad are
included under priority sector.
6. What is the limit for housing loans under
priority sector?
Loans to individuals up to ₹ 28 lakh in
metropolitan centres (with population of ten lakh
and above) and loans up to ₹ 20 lakh in other
centres for purchase/construction of a dwelling
unit per family provided the overall cost of the
dwelling unit in the metropolitan centre and at
other centres should not exceed
₹ 35 lakh and ₹ 25 lakh respectively.
7. Limits under Social infrastructure Bank loans up
to a limit of ₹ 5 crore per borrower for building
social infrastructure for activities namely schools,
health care facilities, drinking water facilities and
sanitation facilities in Tier II to Tier VI centres.
8. Limits under Renewable Energy Bank loans up
to a limit of ₹ 15 crore to borrowers for purposes
like solar based power generators, biomass based
power generators, wind mills, micro-hydel plants
and for non-conventional energy based public
utilities viz. street lighting systems, and remote
village electrification. For individual households,
the loan limit will be ₹ 10 lakh per borrower.
9. Export credit: Export credit upto 32 percent of
ANBC or Credit Equivalent Amount of Off-Balance
Sheet Exposure, whichever is higher, will be
eligible as part of priority sector for foreign banks
with less than 20 branches. For other banks, the
incremental export credit over corresponding date
of the preceding year will be reckoned upto 2
percent of ANBC or Credit Equivalent Amount of
Off-Balance Sheet Exposure, whichever is higher.
INSPIRE 17
Categories
Domestic scheduled commercial banks and Foreign
banks with 20 branches and above
Foreign banks with less
than 20 branches
Total
Priority
Sector
40 percent of Adjusted Net Bank Credit [ANBC defined in
sub paragraph (iii)] or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher.
Foreign banks with 20 branches and above have to
achieve the Total Priority Sector Target within a maximum
period of five years starting from April 1, 2013 and ending
on March 31, 2018 as per the action plans submitted by
them and approved by RBI.
40 percent of Adjusted Net
Bank Credit [ANBC defined
in sub paragraph (iii)] or
Credit Equivalent Amount
of Off-Balance Sheet
Exposure, whichever is
higher;
to be achieved in a phased
manner by 2020 as
indicated in sub paragraph
(ii) below.
Micro
Enterprises
7.5 percent of ANBC or Credit Equivalent Amount of OffBalance Sheet Exposure, whichever is higher to be
achieved in a phased manner i.e. 7 per cent by March
2016 and 7.5 per cent by March 2017.
The sub-target for Micro Enterprises for foreign banks
with 20 branches and above would be made applicable
post 2018 after a review in 2017.
Khadi and Village Industries Sector (KVI)
All loans to units in the KVI sector will be eligible
for classification under the sub-target of 7 percent
/7.5 percent prescribed for Micro Enterprises
under priority sector.
Monitoring of Priority Sector Lending targets
To ensure continuous flow of credit to priority
sector, there will be more frequent monitoring of
priority sector lending compliance of banks on
quarterly‘basis instead of annual basis as of now.
Non-achievement of Priority Sector targets
Scheduled Commercial Banks having any shortfall
in lending to priority sector shall be allocated
amounts for contribution to the Rural
Infrastructure Development Fund (RIDF)
established with NABARD and other Funds with
NABARD/NHB/SIDBI, as decided by the Reserve
Bank from time to time.
The interest rates on banks‘contribution to RIDF or
any other Funds, tenure of deposits, etc. shall be
fixed by Reserve Bank of India from time to time.
Common guidelines for priority sector loans
Banks should comply with the following common
guidelines for all categories of advances under the
priority sector.
1. Rate of interest
The rates of interest on bank loans will be as per
directives issued by our Department of Banking
Regulation from time to time.
2. Service charges
No loan related and adhoc service
charges/inspection charges should be levied on
priority sector loans up to Rs. 25,000.
17) REVERSE MORTGAGE LOAN
The scheme of reverse mortgage has been
introduced for the benefit of senior citizens
INSPIRE 18
owning a house but having inadequate income to
meet their needs.
Some important features of reverse mortgage are:
a) A homeowner who is above 60 years of age is
eligible for reverse mortgage loan. It allows him to
turn the equity in his home into one lump sum or
periodic payments mutually agreed by the
borrower and the banker.
b) NO REPAYMENT is required as long as the
borrower lives, Borrower should pay all taxes
relating to the house and maintain the property as
his primary residence.
c) The amount of loan is based on several factors:
Borrower’s age, value of the property, current
interest rates and the specific plan chosen.
The valuation of the residential property is done at
periodic intervals and it shall be clearly specified to
the borrowers upfront. The banks shall have the
option to revise the periodic / lump sum amount
at such frequency or intervals based on
revaluation of property.
Settlement--The loan shall become due and
payable only when the last surviving borrower dies
or would like to sell the home, or permanently
moves out. On death of the home owner, the legal
heirs have the choice of keeping or selling the
house. If they decide to sell the house, the
proceeds of the sale would be used to repay the
mortgage, with the remainder going to the heirs.
As per the scheme formulated by National Housing
Bank (NHB), the maximum period of the loan
period is 15 years. The residual life of the property
should be at least 20 years. Where the borrower
lives longer than 15 years, periodic payments will
not be made by lender. However, the borrower
can continue to occupy.
18) BASEL-3 NORMS
The Basel Committee is the primary global
standard-setter for the prudential regulation of
banks and provides a forum for cooperation on
banking supervisory matters. Its mandate is to
strengthen the regulation, supervision and
practices of banks worldwide with the purpose of
enhancing financial stability. Stefan Ingves,
Governor of Sveriges Riksbank(SWEDEN), is the
chairman CHAIRMAN of the Basel Committee.
Basel III Accord - Basel 3 Norms
Basel III or Basel 3 released in December, 2010 is
the third in the series of Basel Accords. These
accords deal with risk management aspects for the
banking sector.
What does Basel III is all about?
According to Basel Committee on Banking
Supervision "Basel III is a comprehensive set of
reform measures, developed by the Basel
Committee on Banking Supervision, to strengthen
the regulation, supervision and risk management
of the banking sector".
What are the objectives / aims of the Basel III
measures?
Basel 3 measures aim to:
→ improve the banking sector's ability to absorb
shocks arising from financial and economic stress,
whatever the source
→ improve risk management and governance
→ strengthen banks' transparency and disclosures.
What are Three Pillars of Basel III Norms?
Pillar 1: Minimum Regulatory Capital
Requirements based on Risk Weighted Assets
(RWAs) : Maintaining capital calculated through
credit, market and operational risk areas.(MAINLY
THAT CAPITAL WHICH CAN ABSORB RISK.)
Pillar 2 : Supervisory Review Process : Regulating
tools and frameworks for dealing with
peripheral(OUTER) risks that banks face.
Pillar 3: Market Discipline : Increasing the
disclosures that banks must provide to increase
the transparency of banks
What are the Major Features of Basel III?
INSPIRE 19
(a) Better Capital Quality : One of the key elements
of Basel 3 is the introduction of much stricter
definition of capital. It means capital with the
higher loss-absorbing capacity. This in turn will
mean that banks will be stronger, allowing them to
better withstand periods of stress.
(b) Capital Conservation Buffer: Another key
feature of Basel iii is that now banks will be
required to hold a capital conservation buffer of
2.5% of RWAs. CCB-aims to conserve the capital of
banks by making a buffer/reserve FOR CRISIS
situation . The aim of asking to build conservation
buffer is to ensure that banks maintain a cushion
of capital that can be used to absorb losses during
periods of financial and economic stress.
(c) Countercyclical Buffer: The countercyclical
buffer has been introduced with the objective to
increase capital requirements in good times and
decrease the same in bad times. The buffer will
slow banking activity when it overheats and will
encourage lending when times are tough i.e. in
bad times. The buffer will range from 0% to 2.5%
of RWAs, consisting of common equity/shares or
other fully loss-absorbing capital.
(d) Minimum Common Equity and Tier 1 Capital
Requirements: The minimum requirement for
common equity, the highest form of loss-absorbing
capital, has been Minimum Common Equity(the
highest form of loss-absorbing capital) raised
under Basel III from 2% to 4.5% of total riskweighted assets. The overall Tier 1 capital
requirement, consisting of not only common
equity but also other qualifying financial
instruments, will also increase from the current
minimum of 4% to 6%. Although the minimum
total capital requirement will remain at the current
8% level.
(e) Leverage Ratio: A leverage ratio is the relative
amount of capital to total assets (not riskweighted). This aims to put a cap on swelling of
leverage in the banking sector on a global basis.
3% leverage ratio of Tier 1 will be tested before a
mandatory leverage ratio is introduced in January
2018.
(f) Liquidity Ratios: Under Basel III, a framework for
liquidity risk management will be created. A new
Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR) are to be introduced in 2015
and 2018, respectively.
FACTS
 Minimum Ratio of Total Capital To RWAs-10.50%
 Minimum Ratio of Common Equity to
RWAs--4.50% to 7.00%
 Tier I capital to RWAs--6.00%
 Core Tier I capital to RWAs--5.00%
 Capital Conservation Buffers to RWAs-2.50%
 Leverage Ratio--3.00%
 Countercyclical Buffer--0% to 2.50%
MUTUAL FUNDS:
Mutual funds are investment avenues that pool
the money of several investors to invest in
financial instruments such as stocks, debentures
etc. The profits earned on the investments is
distributed among the investors on the basis of the
units held by each of them. Due to a large pool of
investors, the individual risk is spread. So
individually you take on low risk. The mutual funds
in India are governed by Association of Mutual
Funds in India, the umbrella body for mutual
funds, which is in turn governed by the Securities
and Exchange Board of India.
BANKING TERMS
Base Rate:The Base Rate is the minimum interest rate of a
Bank below which it cannot lend, except for DRI
advances, loans to bank's own employees and loan
INSPIRE 20
to banks' depositors against their own deposits.
(i.e. cases allowed by RBI).
Bridge Loan:A loan made by a bank for a short period to make
up for a temporary shortage of cash. Bridge loan
covers this period between the buying the new
and disposing of the old one.
Credit Authorization Scheme:-Credit Authorization
Scheme was introduced in November, 1965 when
P C Bhattacharya was the chairman of RBI. Under
this instrument of credit regulation RBI as per the
guideline authorizes the banks to advance loans to
desired sectors
Demat Account:
The term "demat", in India, refers to a
dematerialised account for individual Indian
citizens to trade in listed stocks or debentures.
Endorsement:
When a Negotiable Instrument contains, on the
back of the instrument an endorsement, signed by
the holder or payee of an order instrument,
transferring the title to the other person, it is
called endorsement.
Merchant Banking :
When a bank provides to a customer various types
of financial services like accepting bills arising out
of trade, arranging and providing underwriting,
Open Market Operations:new issues, providing advice, information or
An open market operation is an instrument of
assistance on starting new business, acquisitions,
monetary policy which involves buying or selling of mergers and foreign exchange.
government securities from or to the public and
Money Laundering
banks.
The process of creating the appearance that large
Moral Suasion:amounts of money obtained from serious crimes,
Moral Suasion is just as a request by the RBI to the such as drug trafficking or terrorist activity,
commercial banks to take so and so action and
originated from a legitimate source.
measures in so and so trend of the economy. RBI
Mortgage:
may request commercial banks not to give loans
Transfer of an interest in specific immovable
for unproductive purpose which does not add to
property for the purpose of offering a security for
economic growth but increases inflation.
taking a loan or advance from another. It may be
Special Drawing Rights (SDRs):existing or future debt or performance of an
It is a reserve asset (known as Paper Gold‘) created agreement which may create monetary obligation
within the framework of the International
for the transferor (mortgagor).
Monetary Fund in an attempt to increase
GAAR:
international liquidity, and now forming a part of
The full form of GAAR is : General Anti-Avoidance
countries official forex reserves along with gold,
Rules. Tax Avoidance is an area of concern across
reserve positions in the IMF and convertible
the world. The rules are framed in different
foreign currencies.
countries to minimize such avoidance of tax. It is a
set of general rules enacted so as to check the tax
Bouncing of a cheque:
avoidance.
Where an account does not have sufficient balance BPLR:
to honour the cheque issued by the customer, the In banking parlance, the BPLR means the
cheque is returned by the bank with the reason
Benchmark Prime Lending Rate. However, with the
"funds insufficient" or "Exceeds arrangement".
introduction of Base Rate (explained below), BPLR
This is known as 'Bouncing of a cheque'.
has now lost its importance and is made applicable
INSPIRE 21
normally only on the loans which have been
sanctioned before the introduction of Base Rate
(i.e. July 2010).
Prime Lending Rate (PLR): The rate at which banks
lend to their best (prime) customers. It is usually
less than normal interest rate.
Wholesale Banking:
Wholesale banking is different from Retail Banking
as its focus is on providing for financial needs of
industry and institutional clients.
NRI Banking:Banks allow NRI‘s to open an NRI account when
they complete the account opening formalities. A
customer for this purchase a form has to be filled
up in which the information soughtly the bank is
provided. They can have a NRI Saving Bank
Account, Current Account, Fixed Deposits in Indian
Rupees, Fixed Deposits in foreign currency, NRO
account (Rupee account for crediting income in
India)
Capital Adequacy Ratio (CAR):Capital adequacy ratio measures the amount of a
bank‘s capital expressed as a percentage of its
credit exposure. Globally, the capital adequacy
ratio has been developed to ensure banks can
absorb a reasonable level of losses before
becoming insolvent. Indian banks are expected to
maintain a minimum capital adequacy ratio of 9
per cent (Rs 9 as capital for every Rs 100 in loan or
asset)
investors with more diversification and investing
options than they would have by themselves.
Mutual funds, hedge funds and pension plans are
all run by asset management companies. These
companies earn income by charging service fees to
their clients.
2) What is Liquidity Adjustment Facility(LAF)?
A tool used in monetary policy that allows banks to
borrow money through repurchase agreements.
This arrangement allows banks to respond to
liquidity pressures and is used by governments to
assure basic stability in the financial markets.
3) What is Bancassurance?
It is the term used to describe the partnership or
relationship between a bank and an insurance
company whereby the insurance company uses
the bank sales channel in order to sell insurance
products.
4) What is Balance of Trade?
The value of a country‘s exports minus the value of
its imports. Unless specified as the balance of
merchandise trade, it normally incorporates trade
in services, including earnings (interest, dividends,
etc.) on financial assets.
5) What is Balance of Payments?
A list of all of a country‘s international transactions
for a given time period, usually one year.
Payments into the country (receipts) are entered
as positive numbers, called credits; Payments out
of the country (payments) are entered as negative
numbers called debits. A single numbers
Asset – Liability Mismatch:summarize all of a country‘s international
In finance, an assets liabilities asset–liability
transactions: the balance of payments surplus.
mismatch occurs when the financial terms of an
6) What is NOSTRO Account?
institution's and do not correspond.
A Nostro account is maintained by an Indian Bank
in the foreign countries.
Some Banking Questions
7) What is VOSTRO Account?
1) What is Asset Management Companies?
A Vostro account is maintained by a foreign bank
A company that invests its clients' pooled fund into in India with their corresponding bank.
securities that match its declared financial
8) What is IMPS?
objectives. Asset management companies provide
INSPIRE 22
Immediate Payment Service. It is an instant
interbank electronic fund transfer service through
mobile phones. Both the customers must have
MMID (Mobile Money Identifier Number). For this
service, we don‘t need any GPS-enabled cell
phones.
9) What is BCBS?
Basel Committee on Banking Supervision is an
institution created by the Central Bank governors
of the Group of Ten nations.
10) What is LIBOR?
London InterBank Offered Rate. An interest rate at
which banks can borrow funds, in marketable size,
from other banks in the London interbank market.
11) What is STRIPS?
Separate Trading for Registered Interest &
Principal Securities.
12) What is KYC?
KYC is an acronym for ―Know your Customer‖, a
term used for customer identification process. It
involves making reasonable efforts to determine
true identity and beneficial ownership of accounts,
source of funds, the nature of customer‘s business,
reasonableness of operations in the account in
relation to the customer‘s business, etc which in
turn helps the banks to manage their risks
prudently. The objective of the KYC guidelines is to
prevent banks being used, intentionally or
unintentionally by criminal elements for money
laundering.
KYC has two components - Identity and Address.
While identity remains the same, the address may
change and hence the banks are required to
periodically update their records.
13) What do you mean by term “CASA” related to
bank?
CASA stands for Current Account Savings Account.
The CASA ratio shows how much deposit a bank
has in the form of current and saving account
deposits in the total deposit. A higher CASA ratio
means better operating efficiency of the bank
because on current account there is no interest
payable whereas on savings account a tiny 3.5%
interest is payable by the bank. CASA ratio shows
how much of the deposit of the bank comes from
the current and savings deposit.
14) We hear regularly that all bank branches are
turning CBS. What is CBS?
CBS stands for CORE banking solutions under
which the branches of the banks are
interconnected with each other through intra net
with a central database server. Now, with this
facility, a person having an account in a certain
branch of the bank can operate from any other
branch of the same bank. He need not visit the
same branch to operate his account. The CORE
word in CBS stands for Centralized Online Realtime
Exchange.
Q15) What is Inflation?
Ans. The rise in the prices of goods or service in an
economy over a certain period of time is known as
inflation.
Q16) Name the types of “Inflation”?
Ans. Following are the types of inflation:- -push
inflation -inflation
Q17) What are the effects of “Inflation”?
Ans. Following are the effect of inflation:Q18) What is “Money Laundering”?
Ans. The process of converting illegal money into
legal money is Money Laundering. According to
Section 3 of the Prevention of Money laundering
Act 2002 as: ―Whosoever directly or indirectly
attempts to indulge or knowingly assists or is
involved in any process or activity connected with
the proceeds of crime and is projecting it as the
untainted property shall be guilty of the offence of
money laundering‖.
CODES USED IN BANKING
[1] IFSC (Indian Financial System Code):
Indian Financial System Code is an alpha-numeric
code that uniquely identifies a bank-branch
INSPIRE 23
participating in the NEFT system. This is an 11 digit
code with the first 4 alpha characters representing
the bank, The 5th character is 0 (zero).and the last
6 characters representing the bank branch.
For ex: PNBN0014976 : i. First 4 character PNBN –
refers to Punjab National Bank. ii. 0 is a control
number. iii. last six characters (014976) represents
the PNB branch kurshi Road, Lucknow.
[2] MICR – Magnetic ink character Recognition :MICR is 9 digit numeric code that uniquely
identifies a bank branch participating in electronic
clearing scheme. Used to identify the location of a
bank branch. City (3) Bank (3) Branch (3) The MICR
code is allotted to a bank branch is printed on the
MICR band of cheques. MICR used for electronic
credit system.
[3] SWIFT Code :Society for Worldwide Interbank financial telecommunication India was 74th Nation to join
SWIFT Network. SWIFT Code is a standard format
of bank Identifier code. This code is used
particularly in International transfer of money
between banks. A majority of FOREX related
message are sent to correspondent banks abroad
through SWIFT. SWIFT Code consist 8 or 11
character when code is 8 digit, It is referred to
primary office 4 – bank code 2 – country code 2 –
location code 3 – branch code (optional)
BANKING ABBREVIATIONS
1. PSBs: PUBLIC SECTOR BANKS
2. SNBCs: SCHEDULE NON COMMERCIAL BANKS
3. SENSEX: SENSITIVE INDEX OF STOCK EXCHANGE
4. GNP: GROSS NATIONAL PRODUCT
5. KYC: KNOW YOUR CUSTOMER
6. RTGS: REAL TIME GROSS SETTLEMENT
7. NEFT: NATIONAL ELECTRONIC MONEY
TRANSFER
8. EFT: ELECTRONIC FUND TRANSFER
9. CBS: CORE BANKING SOLUTIONS
10. LIBOR: LONDON INTERBANK OFFERED RATE
11. MIBOR: MUMBAI INTERBANK OFFERED RATE
12. MIBID: MUMBAI INTERBANK BID RATE
13. SARFAESI: SECURITISATION AND
RECONSTRUCTION OF FINANCIAL ASSETS AND
ENFORCEMENT OF SECURITY INTEREST
14. CAMELS: CAPITAL ADEQUECY RATIO, ASSET
QUALITY, MANAGEMENT OF EFFECTIVENESS,
EARNING OF PROFITABILITY, LIQUIDITY, SYSTEM
AND CONTROLS
15. CAR: CAPITAL ADEQUECY RATIO
16. FIIs: FOREIGN INSTITUTIONAL INVESTMENTS
17. FDI: FOREIGN DIRECT INVESTMENT
18. IPO: INITIAL PUBLIC OFFERING
19. MICR: MAGNETIC INK CHARACTER READER
20. BIRD: BANKERS INSTITUTE OF RURAL
DEVELOPMENT
21. IBA: INDIAN BANK ASSOCIATION
22. BPLR: BENCHMARK PRIME LENDING RATE
23. ICICI: INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA
24. HDFC: HOUSING DEVELOPMENT FINANCE
CORPORATION
25. SWOT: STRENGETH, WEEKNESSES,
OPPORTUNITIES AND THREATS
26. SWIFT: SOCIETY FOR WORLDWIDE INTERBANK
FINANCIAL TELECOMMUNICATION
27. FERA: FOREIGN EXCHANGE REGULATORY ACT
28. FEMA: FOREIGN EXCHANGE MANAGEMENT
ACT
29. CASA: CURRENT AND SAVING ACCOUNT
30. NDTL: NET DEMAND AND TIME LIABILITIES
31. NASDAQ: NATIONAL ASSOCIATION FOR
SECURITIES DEALERS AUTOMATED QUOTATIONS
32. CRISIL: CREDIT RATING AND INVESTMENT
SERVICES INDIA LIMITED
33. CIBIL: CREDIT INFORMATION BUREAU OF INDIA
LIMITED
34. NAV: NET ASSET VALUE
35. ICRA: INDIAN CREDIT RATING AGENCY
INSPIRE 24
36. CARE: CREDIT ANALYSIS AND RESEARCH
LIMITED
37. WMAs: WAYS AND MEANS ADVANCES
38. ALM: ASSET LIABILITY MANAGEMENT
39. INFINET INDIAN FINANCIAL NETWORK
40. OLTAS - On-line Tax Accounting System
(OLTAS) for Direct Taxes
41. TIN - Tax Information Network (TIN)
42. IMPS - Interbank Mobile Payment Service
(IMPS).
43. CDR- Corporate Debt Restructuring
44. CAD- Capital Account Deficit
45. REITs: Real Estate Investment Trusts
46. InvITs: Infrastructure Investment Trusts
47. ALM- Asset Liability Management
48. ASBA: Application Supported by Blocked
Amount
49. CBS: Core Banking Solution
50. PIN: Personal Identification Number
51. CCEA – Cabinet Committee on Economic Affairs
52. CECA - Comprehensive Economic Cooperation
Agreement
53. CEPA – Comprehensive Economic Partnership
Agreemeny
54. DTAA – Double Taxation Avoidance Agreement
55. ECBs - External Commercial Borrowings
56. EFSF – European Financial Stability Facility
57. FINO- Financial Inclusion Network Operation
58. FIPB – Foreign Investment Promotion board
59. FSLRC – Financial Sector Legislative Reforms
Commission
60. CRAR: Capital to Risk-weighted Assets Ratio
61. LCR: Liquidity Coverage Ratio
62. TARC - Tax Administration Reform Commission
63. GIRO - Government Internal Revenue Order
64. FRBMA: Fiscal Responsibility and Budget
Management Act
65. AMFI- Association of Mutual Fund in India.
66. TIEA – Tax Information exchange Agreement
67. GAAR - General anti avoidance rule
68. GSLV - Geo-Synchronous Launch Vehicle
69. PPP – Public Private Partnership & Purchasing
Power parity
70. PSLV – Polar Satellite Launch vehicle
71. TAPI - Turkmenistan-Afghanistan-PakistanIndia.
72. QFI -Qualified Foreign Investors
Headquarters of NATIONALIZED BANKS
Allahabad Bank
Kolkata
Bank of India
Mumbai
Bank of Maharashtra
Pune
Canara Bank
Bangalore
Central Bank of India
Mumbai
Corporation Bank
Mangalore
Dena Bank
Mumbai
Indian Bank
Chennai
Indian Overseas Bank
Chennai
Oriental Bank of Commerce New Delhi
Punjab National Bank
New Delhi
Punjab & Sind Bank
New Delhi
State Bank of India
Mumbai
Syndicate Bank
Manipal
UCO Bank
Kolkata
Union Bank of India
Mumbai
United Bank of India
Kolkata
Vijaya Bank
Bangalore
Andhra Bank
Hyderabad
Bank of Baroda
Vadodra
Taglines of Banks
1. Allahabad Bank - A Tradition of Trust
2. Andhra Bank – Where India Banks
3. Bank of Baroda - India‘s International Bank
4. Bank of India - Relationship beyond banking
5. Bhartiya Mahila Bank – Empowering Women
6. Bank of Maharashtra - One family one bank
7. Canara Bank – Together We Can
8. Central Bank of India – Central To you Since
1911
9. Corporation Bank – A Premier Public Sector
Bank
INSPIRE 25
10. Dena Bank - Trusted Family Bank
11. ECGC Bank – You focus on exports. We cover
the risks
12. IDBI Bank – Banking For All, ―Aao Sochein
Bada
13. Indian Bank – Your Tech- Friendly Bank
14. Indian Overseas Bank – Good people to grow
with
15. Punjab National Bank - The name you can bank
upon
16. Punjab & Sind Bank – Where service is a way of
life
17. Oriental Bank of Commerce – Where every
individual is committed
18. UCO Bank – Honours Your Trust
19. Union Bank of India – Good People to Bank
with
20. United Bank of India – The Bank that begins
with ―U‖
21. Vijaya Bank - A friend you can bank on
22. SBI - With you all the way, Pure Banking
Nothing Else, The Nation‘s banks on us
23. Axis Bank – Badhti Ka naam Zindagi
24. ICICI Bank – Hum Hai Na, Khyal Apka
25. HDFC Bank - We understand your world indeed
26. Yes Bank – Experience our Expertise
27. HSBC - The world‘s local bank
23) FINANCIAL REGULATORS
Insurance companies
IRDA
Housing Finance Companies
NHB
Venture Capital Fund
SEBI
Merchant Banking companies
SEBI
Stock broking companies
SEBI
Nidhi Companies
Ministry of corporate
affairs, Government
of India
FINANCIAL ORGANIZATIONS
National Bank for Agriculture and Rural
Development (NABARD) :
a) Established on 12th July 1982 on the
recommendation of CRAFICARD committee (also
called as Sivaraman Comittee)
b) For Agricultural finance, NABARD is the apex
organization.
c) Chairman : Dr. Harsha Kumar Bhanwala
d) Head Quarters : Mumbai
e) It assists Cooperative Banks, RRBs, Land
Development Banks & Scheduled Commercial
banks in lending to farmers, rural artisans and
other nonfarmers in rural areas and to the State
Governments for minor irrigation.
f) Rural Infrastructure Development Fund (RIDF) is
operated by NABARD, instead in April 1995.
g) NABARD is the "Micro-Finance Regulatory
Authority"
Small Industries Development Bank of India
(SIDBI)
Objectives and Functions
a) Small Industries Development Bank of India
(SIDBI in short) was established in the year 1990
(Date : 2nd April 1990) under the Small Industries
Development Bank of India Act 1989 as a
subsidiary of Industrial Development Bank of India.
b) It is the principal financial institution for
promotion, financing and development of small,
tiny and cottage sector. c) Chairman- Dr.
Kshatrapati Shivaji
d) Head Quarters : Lucknow
Securities and Exchange Board of India (SEBI)
It is the regulator for the securities market in India.
SEBI was initially established as a non statutory
body in April 1988, to regulate the working of
stock exchange. Later it was given a statutory
status on April 1992 via SEBI Act, 1992 with the
following objectives.
a) Chairman- UK Sinha
b) Head Quarters : Mumbai
INSPIRE 26
REGIONAL RURAL BANK (RRB):
1) REGIONAL RURAL BANK were set up by an
ordinance in 1975, later replaced by RRBs Act,
1976 as pre Banking Commission recommendation
in 1975.
2) Father of RRB is M.Swaminathan.
3) The Govt. of India had appointed a Working
Group on rural Banks under the chairmanship of
Mr. M. Narasimham in 1975. First RRBs were set
up on 2nd Oct.
4) SHARE HOLDER CONTRIBUTION IN %:
Government of India 50% Sponsor Bank 35% State
Government 15% Total 100%.
EXIM BANK:
a) The Export-Import (EXIM) Bank of India is the
principal financial institution in India for
coordinating the working of institutions engaged in
financing export and import trade.
b) It is a statutory corporation wholly owned by
the Government of India.
c) It was established on January 1, 1982 for the
purpose of financing, facilitating and promoting
foreign trade of India.
d) Chairman- Yaduvendra Mathur
e) Head Quarters : Mumbai
NATIONAL HOUSING BANK(NHB):
1) The National Housing Bank (NHB), the apex
institution of housing finance in India, was set up
as wholly owned subsidiary of the Reserve Bank of
India.
2) The bank started its operations from July 1988.
3) NHB is a subsidiary bank of Reserve Bank of
India.
4) National Housing Bank was established under
section 6 of National Housing Bank Act(1987).
5) The headquarters of NHB is in New Delhi. 6)
Chairman: Shri Sriram Kalyanaraman
ECGC:
Export Credit Guarantee Corporation of India. This
organisation provides risk as well as insurance
cover to the Indian exporters.
a) Chairman- Geetha Muralidhar
b) Head Quarters : Mumbai
Important Committees/Operations in News:
1. Operation Muskaan helped Gurgaon Police to
trace over 1000 kids
2. Union Finance Ministry appointed committee
chaired by retired SC judge A P Shah has
recommended that Minimum Alternate Tax (MAT)
should not be imposed on FIIs retrospectively for
the period preceding 1st April 2015.
3. Ajit Seth to head Public Enterprises Selection
Board.
4. Delhi Police launched Operation Shishtachar to
teach lesson to eve-teasers.
5. To provide security to those devotees taking
part in the 59-day-long annual Amarnath Yatra in
Jammu and Kashmir, Indian Army in first week of
July 2015 launched Operation Shiva.
6. Operation Talaash for missing Dornier ends.
7. The Food Safety and Standards Authority of
India (FSSAI) set up an Expert Group headed by Dr.
D Prabhakaran on Salt, Sugar and Fat in Indian
Food Products.
8. Union Ministry of Finance constituted a Task
Force headed by Dhirendra Swarup on Financial
Redress Agency (FRA).
9. The Union Government formed a committee
under the Chairpersonship of Prime Minister
Narendra Modi to oversee the celebrations of
125th birth anniversary of Dr BR Ambedkar, also
called Bhim Jayanti which is annually celebrated on
14 April.
10. Union Ministry of Finance constituted a
Committee on Revisiting and Revitalizing the
Public Private Partnership (PPP) Model of
Infrastructure Development under the
Chairmanship of Vijay Kelkar.
INSPIRE 27
11. A sub-committee of the Niti Ayog comprising
state chief ministers reached a broad consensus on
bringing down the number of centrally sponsored
schemes to 30 from 66. Flagship schemes such as
Mahatma Gandhi National Rural Employment
Guarantee Scheme, Pradhan Mantri Gram Sadak
Yojana and the National Food Security Mission
would continue even after the restructuring of
schemes starting 2016-17. The panel chaired by
Madhya Pradesh chief minister Shivraj Singh
Chouhan.
12. The much-awaited Bibek Debroy committee
report on the restructuring of Indian Railways lays
down a five-year roadmap to evolve a statutory
rail regulator and scrap the Rail Budget.
13. Union Government constituted Task Force on
Interlinking of Rivers-The task force chaired by BN
Navalawala.
14. Union Ministry of Commerce and Industry
constituted Ajay Shankar committee to simplify
clearances
15. Ministry of Railways constituted Ajay Shankar
Committee to review PPP Cell functioning
United Nations Headquarters
International Organizations
UNO (United Nations Org)
UNICEF
UNCTAD (United Nations Conference on Trade & Development)
WHO (World Health Org)
ILO (International Labour Org)
WMO (World Meteorological Org)
World Intellectual Property Org
International Standards Org.
IMF (International Monetary Fund)
World Bank
UNESCO (United Nations Educational Scientific and Cultural Org)
OECD (Org. for Economic Cooperation and Dev.)
UNIDO (United Nations Industrial Dev. Org)
IAEA (International Atomic Energy Agency)
OPEC(Organization of Petroleum Exporting Countries)
Amnesty International
Commonwealth of Nations
IM(International Maritime Organization)
ICJ (International Court of Justice)
FAO(Food and Agricultural Organization)
NATO(North Atlantic Treaty Organization)
Headquarters
New York
New York
Geneva
Geneva
Geneva
Geneva
Geneva
Geneva
Washington DC
Washington DC
Paris
Paris
Vienna
Vienna
Vienna
London
London
London
The Hague
Rome
Brussels
INSPIRE 28
Transparency International
SAARC(South Asian Association for Regional Coop.)
ASEAN (Association of South East Asian Nations)
APEC (Asia Pacific Economic Forum)
Organization of Islamic Cooperation
Berlin
Kathmandu
Jakarta
Singapore
Jeddah
· Golden Revolution - Fruits/Overall Horticulture
development/Honey Production
· Green Revolution - Food grains
· Grey Revolution - Fertilizer
· Pink Revolution - Onion
production/Pharmaceutical (India)/ Prawn
production
· Red Revolution - Meat & Tomato Production
Credit Rating Agenciesin India and World:
· Round Revolution - Potato
Indian credit rating industry mainly comprises of
· Silver Fiber Revolution - Cotton
CRISIL, ICRA, CARE, ONICRA, FITCH (India Ratings & · Silver Revolution - Egg/Poultry Production
Research) & SMERA.
· White Revolution (In India: Operation Flood) CRISIL - Credit Rating Information Services of India Milk/Dairy production
Limited, Headquarter – Mumbai
· Yellow Revolution - Oil Seeds production
ICRA - Investment information and credit rating
· Evergreen Revolution - Overall development of
agency Headquarter - Gurgaon, India
Agriculture.
CARE - Credit Analysis and Research Headquarters
– Mumbai
Important Wildlife Sanctuary Park:
ONICRA - Headquarter - Gurgaon, India
1. Gir National Park is situated in Gujarat
SMERA - Headquarters – Mumbai
2. Sariska is situated in Alwar, Rajasthan
Fitch (India Ratings & Research) - Headquarters –
3. Ghana Bird Sanctuary is situated in Rajasthan
Mumbai
4. Darraha Wildlife Sanctuary is situated in
Note: CRISIL is the largest credit rating agency in
Rajasthan
India, with a market share of greater than 60%
5. Mt. Abu Wildlife Sanctuary is situated in
Rajasthan
Standard & Poor's (S&P) – Headquarter – New
6. Ranthambore Wildlife Sanctuary is situated in
York, US
Rajasthan
Moody's – Headquarter - New York, US
7. Hazaribagh Wildlife Sanctuary is situated in
Fitch - Headquarter - New York, US
Hazaribag, Jarkhand
8. Mudhumalai Wildlife Sanctuary is situated in
Revolutions in the field of agriculture in India:
Nilgiris, Tamil Nadu
· Black Revolution - Petroleum Production
9. Periyar Wildlife Sanctuary is situated in Idukki,
· Blue Revolution - Fish Production
Kottayam, Kerala
· Brown Revolution - Leather/non-conventional
10. National Chambal (Gharial) Wildlife Sanctuary
(India)/Cocoa production
is situated in Etawah, Uttar Pradesh
· Golden Fiber Revolution - Jute Production
INSPIRE 29
11. Chandraprabha Wildlife Sanctuary is situated in
Uttar Pradesh
12. Bankatna Wildlife Sanctuary is situated in Uttar
Pradesh
13. Nanda Devi Musk Deer Park is situated in
Uttarakhand (included in UNESCO World Heritage
List)
14. Corbett National Park is situated in Nainital,
Uttarakahnd
15. Bondla Game Sanctuary is situated in Goa
16. Mollem Game Sanctuary is situated in Goa
17. Cottigao Wildlife Sanctuary is situated in Goa
18. Sunderbans National Park is situated in West
Bengal (included in UNESCO World Heritage List)
19. Kaziranga Wildlife Sanctuary is situated in
Assam (included in UNESCO World Heritage List)
20. Manas Wildlife Sanctuary is situated in Assam
(included in UNESCO World Heritage List)
21. Dachigam Wildlife Sanctuary is in Srinagar,
Jammu & Kashmir
22. Salim Ali National Park is situated in Jammu &
Kashmir
23. Nagarhole National Park (Rajiv Gandhi National
Park) is situated in Karnataka
24. Bandipur National Park is situated in Karnataka
25. Kanha National Park is situated in Madhya
Pradesh
26. Achanakmar Wildlife Sanctuary is situated in
Chattisgarh
27. Gandhisagar Wildlife Sanctuary is situated in
Madhya Pradesh
28. Wild Ass Sanctuary is situated in Little Rann of
Kutch, Gujarat
Thermal Power plants (TPS) in India:
Mundra TPS, Kutch, Gujarat
Vindhyachal TPS, Singrauli, Madhya Pradesh
Talcher Super TPS, Angul, Odisha
Sipat TPS, Bilaspur , Chhattisgarh
Korba Super TPS, Chattisgarh
Rihand TPS, Sonebhadra, Uttar Pradesh
Jharsuguda TPS, Odisha
Tiroda TPS, Maharashtra
Anpara TPS – Uttar Pradesh
Barauni TPP – Bihar
Bellary TPP – Karnataka
Durgapur TPP – West Bengal
Sikka TPS – Gujarat
Satpura TPS – Madhya Pradesh
Singrauli Super Thermal Power Station – UP
Wanakbori TPS – Gujarat
Nuclear power plants in India:
• Narora atomic power plant - Narora, UP
• Rajasthan atomic power plant: Rawatbhatta,
Rajasthan
(India & Candada)
• Tarapur atomic power plant – Maharashtra
(India & US)
• Kakarpar atomic power plant - Gujarat
• Madras atomic power plant - Tamilnadu
• Kaiga atomic power plant - Karnataka
• Kundankullam : in Tirunelveli district, Tamil Nadu
(India
& Russia)
• Jaitapur Nuclear Power Plant - Ratnagiri district
in
Maharashtra (India & France)
Dams in India:
Tehri Dam: on Bhagirathi River, Uttarakhand
Lakhwar Dam on Yamuna river, Uttrakhand
Iduuki Arch Dam – on Periyar river, Kerala
Koyna Dam – on Koyana river, Maharshtra
Bhakra nangal Dam: on Sutlej River, Punjab and
Himachal Pradesh.
Sardar Sarovar Dam: on Narmada River, Gujarat
Srisailam dam: on Narmada River, Andhra Pradesh
Ranjit Sagar Dam: on Rav river, Punjab
Baglihar Dam: on Chenab river , J& K
Cheruthoni (Eb) Dam: on Cheruthoni, Kerala
Hirakud Dam: on Mahanadi River, Orissa
Nagarjuna sagar Dam: on Krishna River, Andhra
Pradesh
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Indira SagarDam: on Narmada River, Madhya
Pradesh
Ukai Dam: on Tapi river, Gujarat
Maithon Dam: on Barakar river, Jharkhand
Krishnarajsagar Dam: on kaveri river, Karnataka
Mettur Dam: on Kaveri River, Salem district in
Tamil Nadu
TungaBhadra Dam – on Tungabhadra rive,
Karnataka
Folk dances in India
Changu: Odissa and Andhra Pradesh
Gair: Rajasthan.
Garba, Dandiya Rass: Gujarat
Ghoomar: Rajasthan.
Karagam: Tamil Nadu.
Dumhal: Kashmir.
Lavani: Maharashtra
Odissi: Orissa
Rauf – Jammu & Kashmir
Nautanki, Thora, Chappeli, Raslila, Kajri - UP
Classical dances in India
Kathak: Uttar Pradesh.
Bihu: Assam
Bharat Natyam: Tamil Nadu
Kuchipudi: Andhra Pradesh.
Kathakali: Kerala.
Chhau: Orissa, Bihar and West Bengal
Bhangra: Punjab.
Khantumm – Mizoram
Lines b/w Different Countries in the World
1. Durand Line: Pakistan and Afghanistan
2. Mc. Mohan Line: India(Arunachal Pradesh
Region) and China
3. Radcliff Line: India and Pakistan
4. Line of Control :It divides Kashmir between India
and Pakistan.
5. Hidden berg Line: Germany and Poland
6. Maginot Line: France and Germany
7. Older Neisse Line: Germany and Poland
8. Mannerheim Line :Russia and Finland border.
9. Siegfried Line : Germany and France.
10. 17th Parallel: North Vietnam and South
Vietnam
11. 24th Parallel : India and Pakistan.
12. 26th Parallel : Australia & South Africa
13. 38th Parallel: North Korea and South Korea
14. 49th Parallel: Canada and USA
Stock Exchanges and their Index:
1. BSE (Bombay Stock Exchange) - SENSEX (
Sensitive Index)
- BSE is oldest stock exchange in Asia located at
Dalal Street in Mumbai
- Sensex Consists of 30 companies
2. NSE (National Stock Exchange) - Nifty-50
-NSE is the largest stock exchange in India
-Nifty consists of 50 companies
3. NYSE (Newyork Stock Exchange) - DJ ( Dow
Jones)
- NYSE world's first and largest stock market
4. NASDAQ (National association of securities
dealers
Automated Quotation System)- NASD-100
- NASDAQ is the first electronic stock market in the
world located in New York.
5. Tokyo Stock Exhange (Japan) - Nikkei-225
6. Korea Stock Exchange(Seoul, South korea) –
Kospi
7. Shenghai Stock Exchange(China)- Composite
Index
8. Shenzen Stock Exchange(China)- Composite
Index
9. German Stock Exchange- DAX(Deutscher Aktein
Index)
10. Hong Kong Stock Exchange- Hang Seng
11. SGX (Singapore Exchange)- STI( Straits Times
Index)
12. LSE (London Stock exchange) or UK stock
exchange- Footsie or FTSE-100 ( Financial Times
and London Stock Exchange)
13. France Stock Exchange - CAC-40 (Cotation
Assisteeen Continuo)
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ORGANISATIONS & THEIR HEAD
1. RBI- Raghuram Govinda Rajan & Deputy
Governors:
a) Shri S. S. Mundra
b) Shri R. Gandhi
c) Dr. Urjit R. Patel
d) Shri H R Khan
2. SEBI-U.K. Sinha
3. NABARD-Harsh Kumar Bhanawala
4. FICCI-Sidharth Birla
5. IBPS- T.M. Bhasin
6. RAW-Rajinder Khanna
7. IB-Saiyad Ashif Ibrahim
8. CBI-Ranjeet Sinha
9. UPSC-Deepak Gupta
10. SSC-Amitava Bhattacharyya
11. UGC- Ved Prakash
12. Indian Army-Lt. Gen. Dalbir Singh Suhag
13. Indian Airforce-Arup Raha
14. Indian Navy-Admiral Robin K Dhowan
15. BSF - D.K. Pathak
16. ISRO - Kiran Kumar
17. NASSCOM President-R Chandrasekaran
18. ASSOCHAM-Rana Kapoor
19. DRDO-Avinash Chander
20. SBI-Arundhati Bhattacharya
21. IRDA-T.S.Vijayan
22. TRAI-Ram Sewak Sharma
23. World Bank-Jim Yong Kim
24. IMF-Christane Legarde
CENSUS
1) The population of the country as per the
provisional figures of Census 2011 is 1210.19
million of which 623.7 million (51.54%) are males
and 586.46 million (48.46%) are females. The
major highlights of the Census 2011 (Provisional
figures) are as under:
*The population of India has increased by more
than 181 million during the decade 2001-2011. 2)
Percentage growth in 2001-2011 is 17.64; males
17.19 and females 18.12.
*2001-2011 is the first decade (with the exception
of 1911-1921---GREAT DEPRESSION) which has
actually added lesser population compared to the
previous decade.
3) Uttar Pradesh (199.5 million) is the most
populous State in the country followed by
Maharashtra with 112 million.
Some of the highlights –
Our census, Our Future - 1872 - 15th Census 1,21,01,93,422 - 2nd with 17.5% (1st China with
19%) - Uttar Pradesh - Sikkim - Kerala (93.9%) Bihar (63.82%) - Female : Male (940 : 1000) Kerala (1084 : 1000) - Haryana - Puducherry Damn & Dayyu (61 : 1000) - 82.14% - 74.04%
Growth Rate - 17.64% - Meghalaya - Lakshadweep
(92.2%) - Dadra Nagar & Haweli - Serechhip
(Mizoram) - Dadra Naga & Haveli - Bihar (1102
sq.km) - Arunachal Pradesh (17) - 640 - Thane
(Mumbai) - Palakkad (Kerala) - Kerala - Palakkad
(Kerala) - 382 sq. km -2011) - 181 million
CM’S IN 2015 AUGUST
1. Andhra Pradesh-N. Chandrababu Naidu
2. Arunachal Pradesh-Nabam Tuki
3. Assam-Tarun Gogoi
4. Bihar-Nitish Kumar
5. Chhattisgarh-Raman Singh
6. Delhi-Arvind Kejriwal
7. Goa-Laxmikant Parsekar
8. Gujarat-Anandiben Patel
9. Haryana-Manohar Lal Khattar
10. Himachal Pradesh-Virbhadra Singh
11. Jammu and Kashmir-Mufti Mohammad Sayeed
12. Jharkhand-Raghuvar Das
13. Karnataka-Siddaramaiah
14. Kerala-Oommen Chandy
15. Madhya Pradesh-Shivraj Singh Chouhan
16. Maharashtra-Devendra Fadnavis
17. Manipur-Okram Ibobi Singh
18. Meghalaya-Mukul Sangma
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19. Mizoram-Lal Thanhawla
20. Nagaland-T. R. Zeliang
21. Odisha-Naveen Patnaik
22. Puducherry-N. Rangaswamy
23. Punjab-Parkash Singh Badal
24. Rajasthan-Vasundhara Raje
25. Sikkim-Pawan Kumar Chamling
26. Tamil Nadu-Jayalalithaa
27. Telangana-K. Chandrashekar Rao
28. Tripura-Manik Sarkar
29. Uttar Pradesh-Akhilesh Yadav
30. Uttarakhand-Harish Rawat
31. West Bengal-Mamata Banerjee
List of Cabinet Ministers
● Narendra Modi – Personnel, Public Grievances
and Pensions, Department of Atomic Energy,
Department of Space, All important policy issues
and all other portfolios not allocated to any
Minister
● Rajnath Singh – Home Affairs
● Sushma Swaraj – External Affairs, Overseas
Indian Affairs
● Arun Jaitley – Finance, Corporate (Additional
charge – Affairs Information and Broadcasting) ●
Manohar Parrikar – Defence
● M Venkaiah Naidu – Urban Development,
Housing, Urban Poverty Alleviation, Parliamentary
Affairs
● Nitin Gadkari – Road Transport and Highways,
Shipping
● Suresh Prabhu – Railways
● Uma Bharati – Water resources, River
Development and Ganga Rejuvenation
● Dr Najma Heptulla – Minority Affairs
● Ramvilas Paswan – Consumer Affairs, Food and
Public Distribution
● Kalraj Mishra – Micro, Small and Medium
Enterprises
● Maneka Gandhi – Women and Child
Development
● Ananthkumar – Chemicals and Fertilizers
● Ravi Shankar Prasad – Communications and
Information Technology
● Ashok Gajapathi Raju – Civil Aviation
● Anant Geete – Heavy Industries and Public
Enterprises
● Harsimrat Kaur Badal – Food Processing
Industries
● Narendra Singh Tomar – Mines, Steel, Labour
and Employment
● Jual Oram – Tribal Affairs
● Radha Mohan Singh – Agriculture
● Thaawar Chand Gehlot – Social Justice and
Empowerment
● Smriti Irani – Human Resource Development
● JP Nadda – Health and Family Welfare
● Birender Singh – Rural Development, Panchayati
Raj, Drinking Water and Sanitation
● DV Sadananda Gowda – Law and Justice
● Dr Harsh Vardhan – Science and Technology
Earth Sciences
List of few important Ministers of State
(Independent Charge)
● General VK Singh – Statistics and Programme
Implementation (Independent Charge), External
Affairs, Overseas Indian Affairs
● Inderjit Singh Rao – Planning (Independent
Charge), Statistics and Programme Implementation
(Independent Charge), Defence
● Dharmendra Pradhan – Petroleum and Natural
Gas (Independent Charge)
● Sarbananda Sonowal – Skill Development,
Entrepreneurship, Youth Affairs and Sports
(Independent Charge)
● Prakash Javadekar – Information and
Broadcasting (Independent Charge), Environment,
Forest and Climate Change (Independent Charge),
Parliamentary Affairs
● Dr Jitendra Singh – Science and Technology
(Independent Charge), Earth Sciences
(Independent Charge), Prime Minister Office,
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Personnel, Public Grievances and Pensions,
Department of Atomic Energy, Department of
Space
Important Organizations:
1. United Nation (UN) – is an intergovernmental
organization established on 24 October 1945 to
promote international co-operation.
Headquarter – New York , Head – Ban ki-moon
Member - South Sudan new member country .
Total– 193 members
2. WTO (World Trade Org.) –Yemen new member
country. Total – 160 members.
Headquarter – Geneva, Switzerland, Head Roberto Azevêdo
3. World Bank - The World Bank is a United
Nations international financial institution that
provides loans to developing countries for capital
programs.
Headquarter - Washington D.C. (United States)
President – Jim Yong Kim
Member - South Sudan new member country.
Total– 188 members
4. IMF – The International Monetary Fund (IMF) is
an international organization that was initiated in
1944 at the Bretton Woods Conference and
formally created in 1945 by 29 member countries.
Headquarter – Washington DC . (United States)
President – Christine Lagarde
Member - South Sudan new member country.
Total– 188 members
5. European Union – Croatia new member country.
Total– 28 member countries.
Headquarter – Brussels, Belgium
President of the European Commission: JeanClaude Juncker
6. Eurozone - The growth of the eurozone is an
ongoing process within the European Union (EU).
All Member states of the European Union, except
for Denmark and the United Kingdom are obliged
to adopt the euro as their sole currency once they
meet the criteria.
Member – The eurozone currently comprise 19 EU
states.
Note: i). Latvia becomes the 18th Member State to
adopt the euro on 1 January 2014.
ii. Lithuania has been approved for euro adoption
on 1 January 2015.
7. ASEAN - Association of Southeast Asian Nations
is a political and economic organisation of ten
countries located in Southeast Asia, which was
formed on 8 August 1967.
Headquarter – Jakarta, Indonesia Member - 10
member countries (India is not the member of
ASEAN)
8. APEC – Asia – Pacific Economic Cooperation –is a
forum for 21 Pacific Rim member economies that
seeks to promote free trade and economic
cooperation throughout the Asia-Pacific region. It
was established in 1989
Headquarter – Singapore Member – 21
9. OPEC (Organization of the Petroleum Exporting
Countries) is an international organization and
economic cartel whose mission is to coordinate
the policies of the oil-producing countries.
Headquarter – Vienna, Austria , Member - 12
member countries.
President - Diezani Alison-Madueke
10. NATO (North Atlantic treaty Organization):
NATO‘s essential purpose is to safeguard the
freedom and security of its members through
political and military means.
Headquarter – Brussels, Belgium Member – 28
member Countries.
11. SAARC (South Asian Association of Regional CoOperation): is an economic and geopolitical
organization of eight countries that are primarily
located in South Asia or the Indian subcontinent.
Headquarter – Kathmandu, Nepal – 8 Member
Countries.
Secretary-General: Arjun Bahadur Thapa.
12. ICJ (International Court of Justice): is the
primary judicial branch of the United Nations. It is
INSPIRE 34
based in the Peace Palace in The Hague,
it by duly authorized international branches,
Netherlands. Its main functions are to settle legal
agencies, and the UN General Assembly.
disputes submitted to it by states and to provide
Headquarter The Hague, Netherlands.
advisory opinions on legal questions submitted to
Regulator
Sectors
Chairman
Headquarter
Reserve Bank of India
Financial system and monetary policy,
Raghuram
Mumbai
Money Market
Rajan
Securities and Exchange
Board of India (SEBI)
Security & Capital Market, stock broking
& Merchant Banking, Nidhis, Chit Fund
U.K. Sinha
Mumbai
Insurance Regulatory and
Development Authority
(IRDA)
Telecom Regulatory
Authority of India (TRAI)
Forward Markets
Commission
Pension Fund Regulatory
Development Authority
(PFRDA)
Insurance industry
T. S. Vijayan
Hyderabad
Telecommunication Industry
R s Sharma
New Delhi
Commodity Market
Ramesh
Abhishek
Hemant
Contractor
Mumbai
Pension sector
Important Days
1. 12th January- National Youth day (Birthday of
Vivekananda).
2. 15th January- Army day.
3. 24th Jan- National Girl Child Day.
4. 25th January- National tourism day/ Voters
day
5. 30th January- National Martyrs day & World
anti Leprosy Day
6. 4th Feb- World Cancer Day.
7. 28th Feb- National science day
8. 8th March- International women day
9. 9th March- World Kidney day
10. 15th March- World Consumer rights day ,
11. 20th March- World Sparrow Day &
International Happiness Day.
12. 21st March- World Forestry day
13. 22nd March- World water day
14. 23rd March- World Meteorological day
16. 2 April- World Autism Awareness Day
New Delhi
17. 7th April- World Health day
18. 21st April- Civil service day
19. 22nd April- World Earth day
20. 24th April- Panchayat Divas
21. 1st May- International Labour day
22. 3rd May- World Press Freedom Day
23. 11th May- National Technology day
24. 21st May- Anti Terrorism day (Death day of
Rajiv Gandhi)
25. 31st May- Anti Tobacco day (No smoking day)
26. 5th June- World Environment day
27. 1st July- Doctors day
28. 11th July - World population day
30 6th August- Hiroshima day
31. 9th August- Nagasaki day
32. 12th August- International youth day
INSPIRE 35
33. 29th August- National Sports day (Birthday of
Dhyan Chand)
34. 5th Sept- Teachers day
35. 8th Sept- World Literacy day
36. 14th Sept- Hindi Divas
37. 15th Sept- Engineers day
38. 16th Sept- Ozone day
39. 2nd Oct- International Non-violence day
40. 8th Oct- Air force day
41. 9th Oct- World post day
42. 24th Oct- United nation day
43. 17th Nov- Students day
44. 18th Nov- Adults day
45. 19th Nov- Citizens day
46. 27th Nov- National law day
47. 1st Dec- AIDS day
48. 4thDec- Navy day
49. 10thDec- Human Rights day
50. 14th Dec- National Energy Conservation Day.
51 24 Dec- National Consumers Rights Day
INSPIRE 36